Southern Company (the) · NYSE:SO
Southern Company (the) — ESG Presentation (August 2024)
30 slides from Southern Company (the)'s sustainability presentation, August 2024
Slide 1: Shareholder Sustainability Update
Shareholder Sustainability Update August 2024
Slide 2: We provide clean, safe, reliable, affordable energy and customized solutions
We provide clean, safe, reliable, affordable energy and customized solutions Capabilities in 50 States 7 Electric & Natural Gas Utilities 9 Million Customers More than 28,000 Employees Approximately 44,000 MW of Generating Capacity In this presentation, the terms “we”, “us” and “our” all refer to So
Slide 3: Southern Company Value Proposition
Southern Company Value Proposition Strategy: Maximize long-term value to shareholders through a customer-, community-, and relationship-focused business model that produces sustainable levels of return for investors Objective of maintaining a high degree Objective of 77 years of financial integrity
Slide 4: Vogtle Units 3 and 4 Have Been Successfully Completed
Vogtle Units 3 and 4 Have Been Successfully Completed Plant Vogtle is now the largest generator of clean energy in the United States 4
Slide 5: Sustainability Highlights
Sustainability Highlights Governance (Slides 6-11) ▪ Independent and diverse Board of Directors that demonstrates a range and depth of experience, with a focus on regular refreshment and strong independent leadership ▪ Board oversight of key risks and opportunities and established corporate governan
Slide 6: Governance: Independent, diverse and experienced Directors
Governance Independent, diverse and experienced Directors Janaki Akella Anthony F. Earley Jr. John D. Johns William G. Smith Jr. Christopher C. Womack Independent Lead Independent Independent Independent Chairman, President & Former Digital Director Senior Advisor, Chairman, President CEO, Southern
Slide 7: Governance: Range and depth of expertise on the Board
Governance Range and depth of expertise and experience on the Board Southern Company’s Board of Directors possess a range and depth of expertise and experience to effectively oversee the Company’s operations, risks and long-term strategy Additional information provided in Southern Company’s 2024 Pro
Slide 8: Governance: Focus on regular, thoughtful board refreshment
Governance Focus on regular, thoughtful board refreshment October 2021 October 2023 Five New Director Additions in Past 3 Years Kristine L. Svinicki Christopher C. Womack Lizanne Thomas Shantella E. Cooper David E. Meador Founder & CEO, Journey Adjunct Professor of Nuclear Chairman, President & CEO,
Slide 9: Governance: Robust role of the Lead Independent Director
Governance Robust role of the Lead Independent Director Anthony F. “Tony” Earley, Jr. was elected Lead Independent Director in May 2024 by the independent members of Southern Company’s Board of Directors – Former Chairman, President and Chief Executive Officer of PG&E Corporation – Previously served
Slide 10: Governance: Board oversight of key risks and opportunities
Governance Thoughtful Board oversight of key risks and opportunities The full Board regularly discusses key topics as part of its regular agenda, including Southern’s decarbonization strategy and human capital management. Board committees take a deeper dive into risks and opportunities and report ou
Slide 11: Governance: Corporate governance standards and practices
Governance Corporate governance standards and practices designed to create long-term value for our stockholders ▪ Annual election of Directors ▪ 100% independent Board committees ▪ Executive session on agenda at every regular Board ▪ Majority voting standard for Director election and committee meeti
Slide 12: Environmental: GHG goals and emissions
Environmental Medium-term GHG Goal: 50% reduction by 2030 Long-term GHG Goal: Net zero by 2050 Total Scope 1 GHG emissions Annual energy mix* (based on equity share) 1% 157 49% 14% 14% Metric tons of C02e (millions) Renewables/Other 17% 16% 79 Nuclear 52% 69% Natural Gas 17% 2007 (Baseline) 2023 Coa
Slide 13: Environmental: Achieving our path to net zero
Environmental Achieving our path to net zero A path to net zero ▪ We expect our path to net zero to be achieved through: – Continued coal fleet transition – Thoughtful use of natural gas – Further growth in portfolio of zero- carbon resources – Enhanced energy efficiency initiatives – Continued inve
Slide 14: Environmental: Scenario planning guides fleet transition
Environmental Thoughtful scenario planning process guides fleet transition to achieve GHG reduction targets ▪ Scenario planning process has been in place since 2008 and ▪ Each operating company is committed to reliability and serves as basis for integrated resource planning at state- affordability w
Slide 15: Environmental: Coal retirements since 2007
Environmental Coal retirements since 2007 demonstrate significant fleet transition Number of Coal Units Coal Capacity Megawatts (MW) (Nameplate) 66 91% 20,457 87% reduction in reduction number of in coal coal units* capacity* 8,523 15 2,670 6 2007 2023 Mid-2030s E* 2007 2023 Mid-2030s E* Units Remai
Slide 16: Environmental: Growth in renewables and storage portfolio
Environmental Strong historical growth in renewables and storage portfolio, with significant future additions expected ~20,000 Over 4X MWs increase in renewable and storage resources* >11,600 MWs <5,000 MWs 2015 2023 2030E* Solar Wind Hydro Storage Other * Includes owned and contracted resources inc
Slide 17: Environmental: Focusing on the full value chain of GHG emissions
Environmental Focusing on the full value chain of GHG emissions Comprehensive GHG emissions reporting along with a focus on reducing emissions from operations and driving upstream and downstream emissions reductions Emissions Reporting and Reduction Highlights 2023 GHG Emissions by Scope ✓ Disclose
Slide 18: Social: Commitment to human capital management
Social Strong commitment to human capital management and addressing systemic racism Our employees are one of our ▪ Committed to Moving to Equity greatest assets, and our actions – Building a healthy and diverse culture demonstrate the value we place – Committed to be a role model among companies for
Slide 19: Social: Workforce demographics
Social Workforce demographics reflect our commitments (2023 highlights) Aggregated workforce EEO-1 data is available here. 19
Slide 20: Social: Committed to a Just Transition
Social We are committed to a Just Transition for our stakeholders As Southern Company transitions to a clean energy Our Just Transition Principles foster: future, we understand there will be potential opportunities and challenges for our workforce, Strong governance communities and customers Effecti
Slide 21: Transparency: Disclosures responsive to investor interest
Transparency Disclosures responsive to investor interest Sustainability Website available here Key Data and Reports available here Supplier Code of Conduct available here Sustainability Data Table Sustainability Summary Climate Reports Frameworks & Other • TCFD Report • SASB Report • GRI Report • CD
Slide 22: Transparency: Fact sheets
Transparency Disclosures responsive to investor interest Fact Sheets available here Energy Portfolio Emissions Reduction Energy Efficiency Transition & Progress and Reporting Scenario Planning Natural Gas: Decarbonization Hydrogen Environmental Justice and Safety 22
Slide 23: Appendix
Appendix 23
Slide 24: Appendix – Premier State Regulated Electric and Gas Utilities
Appendix – Premier State Regulated Electric and Gas Utilities About 90% of Atlanta Gas Light Chattanooga Gas earnings and cash Nicor Gas flow come from Virginia Natural Gas our state-regulated ▪ Our electric and gas utilities serve customers in 6 states* utility operations ▪ Regulated by state publi
Slide 25: Appendix – Environmental: Transformational technologies and R&D
Appendix – Environmental Southern Company seeks transformational technologies needed to facilitate the transition to carbon-free energy Southern Company has undertaken a systematic, comprehensive review of its R&D plan, including the identification of long-term objectives and aspirations and develop
Slide 26: Appendix - Ratings and rankings demonstrate commitment and progress
Appendix - Transparency Ratings and rankings demonstrate commitment and progress Scale Rating Letter grade CCC – AAA (best) A MSCI (2024) Score 0-10 (best) 5.8 Sustainalytics ESG Risk Rating (2023) 0 (best) – 100 28.1 ISS Governance Score (2024) 1 (best) – 10 1 CDP Climate (2021 & 2022) Letter grade
Slide 27: Appendix – Policy engagement and advocacy
Appendix – Transparency Policy engagement and advocacy is aligned with our net zero by 2050 goal ▪ We annually publish a Political Engagement Report that discloses federal and state expenditures on lobbying and political contributions (e.g., 501(c)(4) and 527) ▪ We describe the public policy advocac
Slide 28: Appendix - Corporate sustainability goals aligned with UN SDGs
Appendix - Transparency Corporate sustainability goals aligned with UN SDGs Southern Company has mapped our five corporate sustainability priorities to the United Nations’ Sustainable Development Goals framework, indicating our alignment with a sustainable future. 28
Slide 29: Appendix – Third-party recognition of sustainability leadership
Appendix – Transparency Third parties continue to rate Southern Company highly for its sustainability leadership and transparency 2023 Top 50 Companies for 2023 America’s Best Large 2023 Wall Street Diversity, DiversityInc (8th Journal’s Management Employers (No. 15 overall, consecutive year) No. 1
Slide 30: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain information contained in this presentation is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning Souther